US dollar subdued as Trump probe, weak US data overshadow Fed

Interest rates are seen rising one more time by the end of this year, according to the median projection of the forecasts released with the Fed’s policy statement, in keeping with the previous forecast.USA stocks fell for the fourth time in five days as selling in technology shares worsened, sending the Nasdaq indexes lower by more than 0.6 percent.In Frankfurt the DAX index fell by 0.86% to 12,695 while the CAC 40 dropped 0.43% in Paris, to close at 5,220.ENERGY: Oil futures had plunged overnight after the US government said oil supplies shrank only slightly last week while gasoline stockpiles grew.The 10-year U.S. Treasuries yield had slipped to as low as 2.103 percent and last stood at 2.129 percent.CURRENCIES: The pound rose nearly a cent, from $1.2695 to $1.2781, after the Bank of England’s statement – currencies tend to rise when rates increase.”Washington, Jun 15 The Federal-reserve/6562″ target=_blank US Federal Reserve has raised its benchmark interest rate by a quarter point to 1.0- 1.25 per cent and signaled another increase remains likely this year, despite the recent spate of weak economic data.US stock futures signalled a rocky start on Wall Street after Wednesday’s rate hike and another tumble in tech stocks.The VNĐ/USD exchange rates saw little changes this morning although the US Federal Reserve (Fed) raised interest rates on Wednesday on the confidence in a growing economy and strengthening job market in the world’s biggest economy.The Federal Open Market Committee also maintained its forecast for one more rate hike this year.MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.7 percent, led by resource shares.In currency markets, the dollar was up 0.2 percent against a basket of major peers, having earlier traded in negative territory as investors wondered whether the Fed would be able to raise rates again this year. The pair of moves reflect the Fed’s view that a USA economic expansion now entering its ninth year no longer needs as much propping up. It fell $1.73, or 3.7 percent, to settle at $44.73 a barrel in NY.The dollar fetched 109.35 yen, not far from Wednesday’s eight-week low of 108.81 yen.Federal Reserve chair Janet Yellen said the rate increase reflected the “progress the economy has made and is expected to make towards the maximum employment and price stability objectives assigned to us by law”.Brent crude, the worldwide benchmark, was down 12 cents a barrel at $46.88.The euro was also unchanged at $1.1217, below a seven-month peak of $1.1296 scaled overnight.